The company’s assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks and associated piping; and crude and light-product marine terminals. It also owns crude oil and natural gas gathering systems and pipelines, as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins.
Investors are paid a massive 9.22% distribution. MPLX stock has a $43 price target at BofA Securities. The lower $37.57 consensus target also compares with Tuesday’s closing price of $30.59.
Sunoco
This well-known company could be the best buy for investors who are more conservative. Sunoco L.P. (NYSE: SUN) distributes and retails motor fuels in the United States. The company operates in two segments.
The Fuel Distribution and Marketing segment purchases motor fuel from independent refiners and oil companies and supplies it to independently operated dealer stations, distributors and other consumers of motor fuel, and partnership operated stations, as well as to commission agent locations.
The All Other segment operates retail stores that offer motor fuel, merchandise, foodservice and other services that include credit card processing, car washes, lottery, automated teller machines, money orders, prepaid phone cards and wireless services. It also leases and subleases real estate properties and operates terminal facilities on the Hawaiian Islands. As of December 31, 2020, the company operated 78 retail stores in Hawaii and New Jersey.
Investors receive an 8.55% distribution. Raymond James has set a $48 target price, while the consensus target is $45.57. The final Sunoco stock trade on Tuesday was reported at $38.60.
These seven top companies offer reasonably safe and reliable distributions, and they are major players in the energy infrastructure arena. Investors looking for solid total return potential can do well owning these MLP leaders. It is also important to note that MLP distributions may contain return of principal. Those looking to avoid the pesky K-1s can always purchase shares in the ALPS Alerian MLP ETF (NYSE: AMLP) and receive a 1099 instead.
Originally posted at 24/7 Wall St.
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